Randstad Selects CCH Tagetik for IFRS 16 Lease Accounting Compliance

CCH Tagetik, part of Wolters Kluwer Tax & Accounting and a leader in global performance management software solutions, today announced that Randstad Holding NV, the world’s second largest HR services provider, has selected CCH Tagetik’s cloud-based IFRS 16 Lease Accounting Solution. In addition to using CCH Tagetik for IFRS 16 compliance reporting, Randstad will also use the solution as a centralized repository for more than 14,000 property and automotive lease contracts.

Issued by the International Accounting Standards Board, IFRS 16 lease accounting requirements go into effect January 1, 2019. The new standards require extensive reporting detail and have the potential for major impact on companies’ balance sheets and income statements. Industry experts advise companies with large lease portfolios to allow significant time in advance of the deadline to identify, compile, and evaluate lease contracts.

“Because of our large global footprint, the upcoming IFRS 16 lease accounting standard represents a huge challenge for Randstad. We needed a flexible end-to-end solution that could fully support all types of lease contracts and related accounting and reporting issues, including contract modifications, extensions and purchase options, subleases, and dismantling costs. CCH Tagetik proved its solution could meet these requirements,” said Rob Fenne, managing director of group accounting for Randstad Holding.

“Randstad was one of CCH Tagetik’s first customers to move to the cloud,” said Marco van der Kooij, managing director for CCH Tagetik Benelux and Nordic.“Our cloud-based solution for IFRS 16 lease accounting gives Randstad a complete end-to-end solution encompassing consolidation, budgeting, forecasting, and analytics. We are honored to have earned their confidence for meeting these rigorous regulation requirements.”

“CCH Tagetik outperformed the competition in terms of functionality and ease of use,” said Casper van Leeuwen, partner of Satriun Group.“Given that Randstad is taking the retrospective approach to IFRS 16, rapid implementation and performance efficiency are absolutely critical in order meet the January 2019 deadline.” Satriun Group, a CCH Tagetik partner, assisted in Randstad’s selection process and is currently working with the company on the solution implementation.

PwC, also a strategic CCH Tagetik partner, served as the end-to-end IFRS 16 advisor to Randstad to help the finance team understand and address the associated business, accounting and technology challenges.

“We began the data gathering, evaluation process and accounting assessments for IFRS 16 at Randstad a year ago,” said Jay Tahtah, PwC partner. “All companies with significant lease portfolios, such as Randstad, will need to implement a fit-for-purpose technology solution to address these new rules. The amount of work to capture and maintain lease data and complete the business integration of a technology solution is often vastly underestimated, so even though IFRS 16 doesn’t go into effect until January 1, 2019, we strongly advise companies to start now.”

CCH Tagetik’s IFRS 16 Lease Accounting Solution can also be used for ASC 842 reporting, required for those companies doing business in the United States. The solution offers a single source of truth, a contract data repository, easy integration with ETLs for easy importing and exporting, built-in calculations and finance intelligence, workflow management and complete data auditability. Further details can be found on this page.

ABOUT RANDSTAD

Randstad specializes in solutions in the field of flexible work and human resources services. The company has approximately 36,000 corporate employees and 4,752 branches and in-house locations in 39 countries. Headquartered in Diemen, The Netherlands, Randstad Holding NV is listed on the Euronext Amsterdam. For more information, see www.randstad.com.